Thursday, July 16, 2009

Mortgage rates Charlottesville

Mortgage bonds are recovering to the 50 and 200 day moving average. The bonds are up 59 basis points fortth day. Cautiously floating. Will be interesting to see what happens to Citi which is a company that makes loans to small businesses.
Leonard Winslow, Dominion Trust Mortgage
(434) 767-2580 Cell
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Posted by Rob Alley at 11:34 AM
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1 comments:

Rob Alley said...

Thursday's bond market has opened well in positive territory, recovering most of yesterday's losses. The stock markets are showing minor gains with the Dow up 18 points and the Nasdaq up 4 points. The bond market is currently up 21/32, which should get us back .250 of the .375 that we lost yesterday.

The bond market had extended its losses during afternoon trading after the FOMC minutes indicated tat Fed members think the recession should be ending soon. They expect that unemployment will still rise, possibly exceeding 10% this year. But they also revised their Gross Domestic Product (GDP) predictions upwards from previous forecasts. The GDP is the measure of all goods and services produced in the U.S., therefore, it is the benchmark reading for tracking economic activity. The unemployment rate revision was favorable to bonds, but the upward revision to GDP forecasts and other optimistic comments about the economy in the minutes led to more selling in bon ds late yesterday.

Today's only data were weekly unemployment figures from the Labor Department. They reported that 522,000 new claims for benefits were filed last week. This was lower than expected and the lowest total since early January. Fortunately for mortgage shoppers, this data has a minimal impact on trading and mortgage rates because it covers only a week's worth of claims.

Tomorrow's only relevant data is June's Housing Starts report. This data gives us an indication of housing sector strength, but is not considered to be of high importance. Analysts are currently expecting to see little change in new starts of housing projects from May to June. However, I don't see this data having much of an impact on mortgage rates unless it varies greatly from forecasts.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 da ys... Lock if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

July 16, 2009 at 12:10 PM

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